B2Gold Corp (TSE: BTO) (NYSE AMERICAN: BTG) and the Government of Mali have come to terms on a deal which sees the Canadian-based mining company take control of the Fekola complex and its open-pit and underground operations.
The company explained on Wednesday that it has positioned the Fekola Complex as a flagship operation, with the Fekola Mine and the broader Fekola Regional area at its core.
This includes the Anaconda Area, which has experienced significant updates in its mineral resource estimates, promising a longer mine life and increased production. Additionally B2Gold’s strategic decision to truck higher-grade saprolite material from Anaconda to the Fekola mill is set to increase gold production by approximately 80,000 to 100,000 ounces annually, highlighting the company’s innovative approach.
Furthermore, B2Gold is expediting the issuance of exploitation permits for Fekola Regional and the approval of the exploitation phase for Fekola underground.
Once the exploitation permit for Fekola Regional is granted, mining operations will begin. The comapny will start initial gold production in early 2025.
This is projected to add approximately 80,000 to 100,000 ounces of gold production annually by trucking open pit ore from Fekola Regional to the Fekola mill.
The mine will also continue to operate under Mali’s 2012 Mining Code, with the Fekola Mining Convention in effect until 2040. Meanwhile, the 2023 Mining Code will govern the Fekola Regional.
This agreement provides the Fekola Complex with a clean slate to move forward under a new economic partnership with the State of Mali.
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Company will pay taxes on mine fuel imports
It includes the distribution of all retained earnings attributable to the state’s 10 per cent ordinary share interest and the conversion of that interest to a 10 per cent preferred share interest, with priority dividends moving forward. It also resolves all outstanding tax assessments, customs disputes, and other assessments.
B2Gold and the Malian government finalized the agreement following a year of discussions since the introduction of the 2023 mining code. The agreement establishes a comprehensive framework that resolves outstanding issues from Mali’s mining audit, income tax, and customs audits, while clarifying how the new mining code applies to the Fekola complex.
The company will also start paying taxes on mine fuel imports, which were previously exempt under the Fekola Mining Convention. To offset these new taxes, the State of Mali will grant a 2 per cent reduction in revenue-based taxes and royalties, applying this reduction to the entire Fekola complex, including the Fekola mine and regional projects.
B2Gold has launched its 2024 exploration program in Mali, allocating $$10 million to the effort. The company is focusing the program on discovering additional high-grade mineralization across the Fekola Complex to enhance feed for the Fekola mill. Significant exploration potential remains, offering the opportunity to further extend the mine’s life. In 2024, the company plans to complete 20,000 meters of diamond and reverse circulation drilling across the Fekola Complex.
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B2Gold finishes its construction in Nunavut
B2Gold has recently been active on multiple fronts.
It finished all of its planned construction on its Goose Project in Nunavut, and consequently that project is now on track for its first gold pour in Q2, 2025. After which, the company will immediately ramp-up to commercial production by Q3 2025. The Goose mine is expected to produce around 310,000 ounces of gold annually over the first five years. B2Gold estimaters the total construction and mine development costs at CAD$1,540 million, reflecting a CAD$290 million increase, driven by project delays and logistical challenges.
Another notable development is the sale of 79 million shares of Canadian mid-level gold producer, Calibre Mining (TSE: CXB) (OTCMKTS: CXBMF) for a total of CAD$139.04 million. This transaction reduced B2Gold’s ownership in Calibre from 14.1 per cent to under 10 per cent. The decision to reduce its stake was based on market conditions and investment strategies, but B2Gold remains a supportive shareholder of Calibre Mining, which holds assets in the U.S., Nicaragua, and Canada.
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Calibre Mining is a sponsor of Mugglehead news coverage
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